Richard-H
Gold Member
- Aug 19, 2008
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The U.S. Treasury (actually the BEP) prints physical federal reserve notes and mints coins (aka physical currency), the federal reserve controls the money supply, a tiny minority of which consists of physical notes and coins (see the components of M1).
Another joker that doesn't understand the difference between currency and money or how the U.S. monetary system works.
The government isn't the "source" of the peoples money, the people are the source of nearly everything that makes money useful, that is the ACTUAL VALUE that money is a store of
While it's true that a thing is worth what it will get, and the true value of U.S. currency is based on what it can buy, the fact that when people refer to 'my money' they are referring to U.S. currency - issued by the U.S. government.
You're splitting hairs over the abstract concept of 'money' vs. 'currency' is disingenuine. The fact is that without the U.S. government, 'your money' is worthless.
You are right about that. Our money hold value because the Govt. backs our currency.
Wonder how long the Govt. would last with out our money?? Not long I would wager.
The ugly truth about economics is that the dominant military entity determines the disposition of all wealth and ownership.
The U.S. government is the world most dominant military entity.
So, if push came to shove (and the government transformed to a dictatorship), the government would survive.
The fact is that the U.S. government is not a dictatorship yet and would let itself be destroyed before forcing itself upon it's people.
However, once it was destroyed, whatever became the dominant military power could and most likely would enslave the people and completely control the disposition of wealth and ownership. Then you'd all be calling that government's money 'your money'.
Well my friend. That's exactly why the FF put the 2nd Amendment in the Constitution.
They feared our enemies and a tyrannical Govt. Oh and I'm sure some military warlord would try to take control but I doubt the majority of the military would go along. They would be busy protecting their families.
Nice hypothetical though and you are one polite poster. Nice to speak with you.
Thanks! No one ever accused me of being a polite poster....
I'm viewing this topic from the point of view that if the U.S. government collapsed due to financial instability, the U.S. military would dissolve...just as the Roman legions dissolved once the central Roman government was destroyed. No pay no army.
The all hell would break loose. No one's money would be worth anything. Out of the anarchy would eventually emerge a dominant military entity...possibly a few competing military entities. They would in turn control the disposition of wealth and ownership and they would issue their own currency.
The value of their currency would be based on the perceived stability and overall military strength.
Another fact is that the theory of 'free market economics' is no more realistic than the theory of 'utopian communism'. Neither can exist.
We'd like to think of ourselves as a free market economy or something close, but without the U.S. government we have nothing but misery.
